Your First Step to Buying San Diego 2-4 units

For the seasoned investor, this may be an obvious point, but it’s an important point to emphasize: the very first step that you need to take when considering being an buyer/investor of a 2-4 unit property, or any property, should be to get a preapproval with a lender. This is such a critical first step for several major reasons:

1) A preapproval will save you heartache and headaches: A preapproval will let you know how much property you are actually able to purchase.

We encounter first time buyers and even seasoned investors who have an impression of how much they can afford, but when they go through the approval process they may realize that they may be qualified to purchase less than they anticipated. This will obviously impact their entire decision making process when searching for a San Diego 2-4 unit property. The last thing you want is to dedicate time and effort into finding a great investment and realize that there are complications with your loan or that you cannot qualify for the property even though you may have substantial income/assets.

2) Most sellers will not allow their property to be shown without an accepted offer and a preapproval is almost always a requirement to be included with each offer.

Sellers want to be sure that you are financially capable of performing on and offer that you submit. The customary way that they can verify this is through a preapproval.

3) The preapproval can paint a clear picture of the numbers and if a purchase makes financial sense.

This goes back to point #1. You can save yourself a great deal of heartache and headache by working out the numbers in advance. A preapproval will give you an idea of what the interest rate will be, your approximate monthly payment, down payment requirements/options, loan program options, etc.

Need a lender referral?

If you have a lender or bank that you have a strong relationship with or if you have someone you can refer a solid lender, we encourage you to have a consulatation with them. They are often free and can usually be done over the phone. If you do not currently have a lender, we can refer a lender who has experience originating loans for San Diego 2-4 units. Having a lender that knows how to originate 2-4 units is very improtant.

Below is a graphic that may help you understand your credit score a little better. As always, we recommend you speak with a lender to get an idea of what your credit and overall financial profile looks like when looking to get a loan.

For further discussion or help with your next 2-4 unit purchase or sale, please don’t hesitate to call!